Ministry of Rural Development
Considerations under Pradhan Mantri Gram Sadak Yojana
The Pradhan Mantri Gram Sadak Yojana  was launched, as a one-time special intervention, with the objective to provide rural connectivity, by way of a single all- weather road, to the eligible unconnected habitations of designated population size  in the core network for uplifting the socio-economic condition of the rural population. Hence, the primary objective of the scheme was to provide all-weather road connectivity to eligible un-connected habitations. No physical targets in terms of Kilometers or financial targets or allocations were fixed for states. The fund allocation to states has been made in subsequent years commensurate with the value of projects sanctioned tostates.
The Government of India subsequently launched PMGSY-II in 2013 for upgradation of 50,000 Kms of existing rural road network to improve its overall efficiency and PMGSY-III in 2019 for consolidation of 1,25,000 Km Through Routes and Major Rural Links connecting habitations, inter-alia, to Gramin Agricultural Markets , Higher Secondary Schools and Hospitals. For each of the above two verticals of PMGSY, state-wise physical targets have been allocated and requisite central share of funds are provided to states based on the value of projects sanctioned to states to construct the allocated length.
Rural roads under PMGSY are constructed and maintained as per the technical specifications and geometric design standards given in the Ministry of Rural Development Specifications for Rural Roads, Rural Roads Manual of the Indian Roads Congress   and also, where required, the Hill Road Manual  and other relevant IRC Codes & Manuals. The choice of design and surface for the road is determined, inter-alia, by factors like traffic, soil type and rainfall, following the technical specifications laid down in the Guidelines for the design of flexible pavements for low volume rural roads  and guidelines for design of rigid pavements .
The works under the scheme are sanctioned by the Ministry based on the Detailed Project Reports  submitted by the respective State Governments. In preparation of DPRs, the State Governments factor into the cost necessitated due to physical and environmental factors such as, topography, soil type, climate, traffic density, rainfall and also considering the requirements of cross drainage  works, drains, and protection works as per site duly following the technical specifications prescribed by the IRC and Ministry of Rural Development. The geography and related factors are, thus, taken into account at the time of preparing the cost estimates for the individual road work. As targets are allocated on the basis of eligible habitations in case of PMGSY-I, and on the basis of length of roads in case of PMGSY-II and III, there is no adverse consequence in terms of fund allocation to states based on geography and relatedfactors.
As a measure of special dispensation, the Union Government bears 90% of the project cost in respect of projects sanctioned under the scheme in North-Eastern and Himalayan States, whereas for other states the Union Government bears 60% of the cost.
This information was given in a written reply by the Union Minister of Rural Development & Panchayati Raj Shri Narendra Singh Tomar in Rajya Sabha today.